London Co. of Virginia Sells 91,760 Shares of Paychex, Inc. $PAYX

Key Points

• London Co. of Virginia trimmed its Paychex stake by 6.3% in the first quarter, selling 91,760 shares and leaving it with 1,354,123 shares valued at about $124.7 million.
• Paychex reported strong quarterly results, with EPS of $1.32 and revenue of $1.61 billion, both slightly above analyst expectations and up 12.5% from a year earlier.
• The company also announced a quarterly dividend of $1.19 per share, implying a 4.2% yield, while analysts currently rate the stock a consensus Hold with an average target price of $107.53.

London Co. of Virginia trimmed its stake in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 6.3% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,354,123 shares of the business services provider's stock after selling 91,760 shares during the quarter. London Co. of Virginia owned 0.38% of Paychex worth $124,744,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in shares of Paychex by 12.1% during the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider's stock valued at $4,750,669,000 after acquiring an additional 4,583,157 shares during the period. LBP AM SA grew its holdings in shares of Paychex by 125.2% in the 4th quarter. LBP AM SA now owns 40,517 shares of the business services provider's stock worth $4,545,000 after purchasing an additional 22,527 shares during the last quarter. Tectonic Advisors LLC increased its position in shares of Paychex by 17.4% during the 4th quarter. Tectonic Advisors LLC now owns 79,708 shares of the business services provider's stock worth $8,942,000 after purchasing an additional 11,805 shares in the last quarter. Danske Bank A S increased its position in shares of Paychex by 14.0% during the 4th quarter. Danske Bank A S now owns 205,341 shares of the business services provider's stock worth $23,035,000 after purchasing an additional 25,184 shares in the last quarter. Finally, Comerica Bank lifted its holdings in Paychex by 10.4% during the 4th quarter. Comerica Bank now owns 121,705 shares of the business services provider's stock valued at $13,653,000 after purchasing an additional 11,497 shares during the last quarter. 83.47% of the stock is currently owned by institutional investors.

Paychex Trading Up 2.6%

Shares of NASDAQ PAYX opened at $113.55 on Friday. The company's 50 day simple moving average is $102.13 and its 200 day simple moving average is $98.40. Paychex, Inc. has a fifty-two week low of $85.45 and a fifty-two week high of $148.11. The firm has a market capitalization of $40.39 billion, a P/E ratio of 23.22 and a beta of 0.84. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26.

Paychex (NASDAQ:PAYX - Get Free Report) last announced its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The firm had revenue of $1.61 billion for the quarter, compared to analysts' expectations of $1.60 billion. During the same period last year, the firm earned $1.19 earnings per share. The business's revenue for the quarter was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, analysts predict that Paychex, Inc. will post 5.96 EPS for the current year.

Paychex Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be given a $1.19 dividend. This represents a $4.76 annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Tuesday, July 28th. Paychex's dividend payout ratio (DPR) is currently 97.34%.

Insider Activity

In related news, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction on Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the completion of the sale, the director directly owned 67,364 shares of the company's stock, valued at $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.80% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. JPMorgan Chase & Co. boosted their price target on shares of Paychex from $100.00 to $105.00 and gave the company an "underweight" rating in a research report on Thursday, June 25th. Stifel Nicolaus raised their price objective on shares of Paychex from $105.00 to $110.00 and gave the stock a "hold" rating in a report on Wednesday, June 17th. Weiss Ratings upgraded shares of Paychex from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, July 20th. Royal Bank Of Canada reissued a "sector perform" rating on shares of Paychex in a report on Thursday, May 28th. Finally, Cantor Fitzgerald restated an "underweight" rating and set a $107.00 price target on shares of Paychex in a research report on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $107.53.

Paychex Company Profile

Paychex, Inc, founded in 1971 by B. Thomas "Tom" Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company's core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers' compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.

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